BRUSSELS, April 29 (Reuters) - EU countries and European Parliament lawmakers failed to reach a deal on watered-down landmark artificial intelligence rules after 12 hours of negotiations on Tuesday and will resume talks next month.
The changes to the AI Act, which entered into force in August 2024 with key elements set to be enforced in stages starting this year, arepart of the European Commission's Digital Omnibus, which aims to simplify a slew of regulations in the digital sector to help businesses catch up with U.S. and Asian rivals.
Europe's AI rules, considered to be the strictest in the world, came amid concerns about the impact of the technology on children, workers, companies and cybersecurity.
"It was not possible to reach an agreement with the European Parliament," a Cypriot official said. Cyprus currently holds the rotating EU Council presidency.
Dutch lawmaker Kim van Sparrentak criticised the failure to reach a deal.
"Big Tech is probably popping champagne. While European companies that care about safety and did their homework now face regulatory chaos," she said in a statement.
People with direct knowledge of the negotiations said the next round of discussions will likely be in two weeks' time.
They said the negotiations which started at 1100 GMT on Tuesday were stymied by some countries and some lawmakers' insistence that industries already subject to sectoral regulations, such as product safety rules, should be exempted from the AI legislation.
The AI regulation sets out stricter requirements on the use of the technology in "high-risk" areas such as biometric identification, utilities supply, health, creditworthiness and law enforcement.
The Omnibus package also includes the General Data Protection Regulation (GDPR), the e-Privacy Directive and the Data Act, among others.
Proposed changes to these regulations and the AI Act have drawn criticism from privacy activists and civil rights groups about caving to Big Tech.
(Reporting by Foo Yun Chee; Editing by Stephen Coates)
